Nissha : Financial Results (FY2026.12 Q1)

May 12, 2026

Company name: Nissha Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange Code number: 7915

URL: https://www.nissha.com/english

Representative: Junya Suzuki, Chairman of the Board and Group CEO

Contact: Daisuke Inoue, Director of the Board, Senior Executive Vice President, CFO Phone: +81-75-811-8111

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on financial results: Available Schedule of financial results briefing session: Scheduled (for institutional investors)

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended March 31, 2026 (January 1, 2026 to March 31, 2026)

   (1) Consolidated Operating Results (cumulative) (% indicates changes from the previous corresponding period)

   	Net sales	Operating	profit	Profit before tax		Profit	Profit attributable to owners of parent	Total comprehensive income
   Three months ended March 31, 2026 Three months ended March 31, 2025	Million yen %	Million yen	%	Million yen	%	Million yen %	Million yen % 422 - 12 (99.0)	Million yen	%
   	45,790 (3.5) 47,442 1.5	750 1,432	(47.6) 13.8	751 592	26.8 (64.6)	447 331.4 103 (91.4)		2,256 (3,765)	- -

   	Basic earnings per share	Diluted earnings per share
   	Yen	Yen
   Three months ended March 31, 2026	8.92	-
   Three months ended March 31, 2025	0.26	-

   (Notes)1. The Company finalized the provisional accounting treatment pertaining to business combination in the fiscal year ended December 31, 2025, and reflected the details of the finalization of the provisional accounting treatment on figures for the three months ended March 31, 2025.

2. The percentage change in profit attributable to owners of parent from the previous corresponding period is presented as "-" because it is 1,000% or more.

(2) Consolidated Financial Position

1. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended December 31, 2025 Fiscal year ending December 31, 2026	Yen	Yen	Yen	Yen	Yen
   	- -	25.00	-	25.00	50.00
   Fiscal year ending December 31, 2026 (Forecast)		25.00	-	25.00	50.00

   (Note) Revision of cash dividend forecast most recently announced: No

2. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2026 (January 1, 2026 to December 31, 2026)

   (% indicates changes from the previous corresponding period)

   	Net sales		Operating	profit	Profit before	tax	Profit attributable to owners of parent		Basic earnings per share
   	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
   First half	94,000	(3.1)	1,800	(29.6)	1,300	18.9	300	-	6.33
   Full year	198,000	1.6	7,000	73.3	5,700	60.5	3,200	219.4	67.49

   (Note) 1. Revision of consolidated financial results forecast most recently announced: Yes

   1. Changes from the previous corresponding period are calculated based on figures after retrospective adjustments, reflecting the finalization of the provisional accounting treatment for the business combination conducted in the fiscal year ended December 31, 2025.

   2. The percentage change in profit attributable to owners of parent from the previous corresponding first half is presented as "-" because it is 1,000% or more.

1. Significant changes in the scope of consolidation during the period under review: No

   New: - ( ), Exclusion: - ( )

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: No

   2. Any changes other than 1) above: No

   3. Changes in accounting estimates: No

3. Total number of issued shares (common stock)

   1. Total number of issued shares at the end of the period (including treasury shares):

      As of March 31, 2026	48,016,100 shares
      As of December 31, 2025	48,016,100 shares

   2. Total number of treasury shares at the end of the period:

      As of March 31, 2026	602,650 shares
      As of December 31, 2025	629,974 shares

   3. Average number of shares outstanding during the period (cumulative total):

• Review of the Japanese-language originals of the attached consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary)

• Explanation of the proper use of financial results forecast and other notes

The performance forecasts and other forward-looking statements contained in this report are based on information available to the Company on the date of this report's release and certain premises that the Company deems to be reasonable. Therefore, the Company has not prepared these descriptions with intent to commit to realize them. Actual results, etc., may differ significantly from the forecasts, however, as a consequence of various factors in the future. For details on the premises of the performance forecasts of the Company and the points to note when using the performance forecasts, please see "1. Qualitative Information on Consolidated Financial Results for the Period under Review, (3) Explanation of consolidated operating results forecast and other forecast information" on page 5 of the appendix.

We are scheduled to hold a briefing session for institutional investors on Tuesday, May 12, 2026. Reference materials to be distributed at the briefing session are scheduled to be posted on our website on that day, as well.

Contents of Appendix

1. Qualitative Information on Consolidated Financial Results for the Period under Review 2

   1. Explanation of operating results 2

   2. Explanation of financial position 4

   3. Explanation of consolidated operating results forecast and other forecast information 5

2. Condensed Consolidated Financial Statements and Principal Notes 6

   1. Condensed consolidated statements of financial position 6

   2. Condensed consolidated statements of profit or loss and comprehensive income 8

      Condensed consolidated statements of profit or loss 8

      Condensed consolidated statements of comprehensive income 9

   3. Condensed consolidated statements of changes in equity 10

   4. Condensed consolidated statements of cash flows 11

   5. Notes to condensed consolidated financial statements 13

(Basis of preparation) 13

(Material accounting policies) 13

(Notes to going concern assumptions) 13

(Segment information) 13

1. Qualitative Information on Consolidated Financial Results for the Period under Review

   During the fiscal year ended December 31, 2025, the provisional accounting treatment pertaining to Cathtek, LLC, which was acquired on October 1, 2024, as well as SHIGAKEN PHARM. IND. CO., LTD., which was acquired on January 8, 2025, was finalized. Accordingly, revised figures based on the finalization of the provisional accounting treatment have been used for the comparative analysis with figures for the three months ended March 31, 2025.

   Effective from the first quarter ended March 31, 2026, the categories within our reportable segments were partially reclassified, and the financial results for the three months ended March 31, 2025 were compared and analyzed in accordance with the reclassified categories. For details, please refer to "2. Condensed Consolidated Financial Statements and Principal Notes, (5) Notes to condensed consolidated financial statements, Segment information."

   1. Explanation of operating results

      The Group's Mission is to use the diverse capabilities of its people and core technologies as an engine for growth to create highly competitive, feature-rich products and services that realize customer value and contribute to better lives for all.

      Guided by this Mission, as our Sustainability Vision (our long-term vision), we aim to create economic and social value by contributing to solving global social issues in the priority markets of Medical, Mobility, and Sustainable Materials, with the integration and orchestration of the diverse talents of our people and our technologies. Under the current 8th Medium-term Business Plan, we aim to achieve stable growth and capital efficiency improvement. Accordingly, we are working to improve and stabilize profitability through strengthening the business portfolio we have built up to date.

      During the three months ended March 31, 2026, the global economy showed a gradual recovery, despite factors such as the turmoil in the Middle East situation and the rise in the resource prices weighing down on the economy. In the United States, consumer sentiment showed signs of weakening against the backdrop of a softening labor market, slowing the pace of economic expansion. In Europe, the economy was supported mainly by domestic demand and remained firm. In China, despite improvements in external demand, a prolonged stagnant real estate market and sluggish domestic demand led to continued weakness in the economy. Meanwhile, in Japan, the economy recovered modestly, supported by improvements in the employment and income environment as well as solid capital investment.

      Under these conditions, during the three months ended March 31, 2026, product demand stayed solid in the Industrial Materials segment in the field of decorations and in the Medical segment. On the other hand, in the Devices segment, product demand for tablets declined significantly and both net sales and operating profit decreased, compared to the same period of the previous year.

      As a result, regarding the financial results for the three months ended March 31, 2026, net sales were ¥45,790 million (a decrease of 3.5% as compared to the same period of the previous year), operating profit was ¥750 million (a decrease of 47.6% as compared to the same period of the previous year) and profit attributable to owners of parent was ¥422 million (an increase of 3,358.6% as compared to the same period of the previous year).

      Following is an overview by business segment.

      Industrial Materials

      In the Industrial Materials segment, we mainly offer proprietary technologies that enable the creation of added value on the surfaces of various materials. IMD and IML, which facilitate simultaneous in-mold decoration, design and function adding of plastic products, are extensively used in mobility components and home appliances in global markets. Also, the metallized paper, which unites the properties of metallic luster and printing friendliness, has the largest market share in the industry as sustainable materials for beverages and foods on a global basis.

      During the three months ended March 31, 2026, while demand showed signs of weakening in the field of sustainable materials, demand for exterior functional components for mobility in the field of decorations grew and net sales increased year on year. On the other hand, operating profit decreased year on year mainly due to costs associated with the production in the field of decorations and decrease in demand for sustainable materials.

      As a result, segment sales for the three months ended March 31, 2026 were ¥19,529million (an increase of 4.0% as compared to the same period of the previous year). Segment profit (operating profit) was ¥708 million (a decrease of 30.1% as compared to the same period of the previous year).

      Devices

      In the Devices segment, we produce components and module products that pursue precision and functionality. Our main products, film-based touch sensors are adopted mainly in tablets and handheld terminals (logistics related) in global markets. During the three months ended March 31, 2026, primarily due to the decline in demand for tablets, net sales decreased year on year. Despite the positive effects of improved productivity on these demand trends, operating profit decreased year on year.

      As a result, segment sales for the three months ended March 31, 2026, were ¥10,400 million (a decrease of 23.3% as compared to the same period of the previous year). Segment profit (operating profit) was ¥392 million (a decrease of 54.6% as compared to the same period of the previous year).

      Medical

      The Medical segment is a business segment that contributes to healthy and affluent life through the contract design/development and manufacturing organization (CDMO) services for medical devices and pharmaceuticals. For medical devices, we provide CDMO services for major medical device manufacturers, especially for those in North America and Europe, with products such as surgical instruments for minimal invasive medical treatments and medical wearable sensors used for a wide range of therapeutic areas. For pharmaceuticals, primarily in Japan, we develop our CDMO business for over-the-counter (OTC) drugs such as cold medicines and analgesic antipyretics, and also manufacture and market our own prescription pharmaceuticals and quasi-drugs.

      During the three months ended March 31, 2026, both net sales and operating profit increased year on year, driven by steady demand for our CDMO services for medical devices and pharmaceuticals.

      As a result, segment sales for the three months ended March 31, 2026, were ¥14,134 million (an increase of 3.7% as compared to the same period of the previous year). Segment profit (operating profit) was ¥841 million (an increase of 13.3% as compared to the same period of the previous year).

   2. Explanation of financial position

      1. Assets, liabilities and equity

         Total assets as of March 31, 2026 increased by ¥1,827 million from the end of the previous year (the fiscal year ended December 31, 2025) to ¥251,947 million.

         Current assets increased by ¥533 million from the end of the previous year to ¥116,755 million. This was mainly because a ¥3,612 million increase of inventories outweighed a ¥489 million decrease of cash and cash equivalents, and a

         ¥2,817 million decrease of trade and other receivables.

         Non-current assets increased by ¥1,294 million from the end of the previous year to ¥135,192 million. This was mainly because of a ¥650 million increase of goodwill due to the impact of foreign exchange conversion, and a ¥548 million increase of other financial assets due to a change in the fair value of financial assets measured at fair value through other comprehensive income.

         Total liabilities as of March 31, 2026 increased by ¥1,161 million from the end of the previous year to ¥133,409 million. Current liabilities decreased by ¥4,019 million from the end of the previous year to ¥77,021 million. This was mainly because a ¥6,173 million decrease of bonds and borrowings outweighed a ¥696 million increase of trade and other payables, and a ¥1,332 million increase of other current liabilities.

         Non-current liabilities increased by ¥5,181 million from the end of the previous year to ¥56,387 million. This was mainly because of a ¥5,150 million increase of bonds and borrowings.

         Total equity as of March 31, 2026 increased by ¥666 million from the end of the previous year to ¥118,538 million. This was mainly because other components of equity increased by ¥880 million due to the impact of foreign exchange conversion, etc. In addition, a ¥656 million increase of capital surplus outweighed a ¥1,053 million decrease of non-controlling interests due to the equity transaction with non-controlling shareholders arising from the additional acquisition of shares in the subsidiary.

      2. Cash flows

      The balance of cash and cash equivalents (the "funds") on a consolidated basis as of March 31, 2026 was ¥38,724 million, a decrease of ¥489 million compared to the end of the previous year.

      The following describes the conditions of each cash flow and the underlying causes for the three months ended March 31, 2026.

      (Net cash provided by (used in) operating activities)

      The funds provided by operating activities amounted to ¥3,969 million (¥1,090 million used for the same period of the previous year). This was mainly because there were ¥751 million in profit before tax, ¥2,562 million in depreciation and amortization, a ¥3,146 million decrease in trade and other receivables, and a ¥547 million increase in trade and other payables, while there were ¥3,320 million of increase in inventories.

      (Net cash provided by (used in) investing activities)

      The funds used in investing activities amounted to ¥1,559 million (a decrease of 79.5% as compared to the same period of the previous year). This was mainly because of ¥1,377 million of purchase of property, plant and equipment and

      ¥197 million of purchase of intangible assets.

      (Net cash provided by (used in) financing activities)

      The funds used in financing activities amounted to ¥3,540 million (a decrease of 0.4% as compared to the same period of the previous year). This was mainly because there were ¥6,495 million in repayments of short-term borrowings,

      ¥597 million in repayments of lease liabilities, ¥451 million in payments for acquisition of non-controlling interests, and

      ¥1,177 million in dividends paid to owners of parent, while there were ¥5,469 million of proceeds from issuance bonds.

   3. Explanation of consolidated operating results forecast and other forecast information

   For the consolidated financial forecasts for the six months ending June 30, 2026 and the fiscal year ending December 31, 2026, as a result of reviewing the operating results for the three months ended March 31, 2026 and the latest demand trends and other factors, the operating results forecast announced on February 12, 2026 has been revised.

   For details, please see the "Notice of Revision to Business Forecast for the First Half of FY2026 (January 1, 2026 to June 30, 2026) and FY2026 (January 1, 2026 to December 31, 2026)" announced today (on May 12, 2026).

2. Condensed Consolidated Financial Statements and Principal Notes
   1. Condensed consolidated statements of financial position

      (Million yen)

      As of December 31, 2025

      As of March 31, 2026

      Assets

      Current assets

      Cash and cash equivalents	39,213		38,724
      Trade and other receivables	39,427		36,610
      Inventories	31,892		35,504
      Other financial assets	525		494
      Other current assets	5,162		5,421
      Total current assets	116,221		116,755

      Property, plant and equipment	49,279	49,400
      Goodwill	33,277	33,927
      Intangible assets	23,144	23,077
      Right-of-use assets	10,176	10,055
      Investments accounted for using equity
      method
      Other financial assets	11,075		11,623
      Retirement benefit asset	80		80
      Deferred tax assets	938		955
      Other non-current assets	382		392
      Total non-current assets	133,898		135,192
      Total assets	250,120		251,947

      Non-current assets

      5,542 5,679

      (Million yen)

      As of December 31, 2025

      As of March 31, 2026

      Liabilities and equity Liabilities

      Current liabilities

      Trade and other payables	32,719		33,416
      Bonds and borrowings	38,781		32,608
      Other financial liabilities	1,131		745
      Lease liabilities	2,228		2,318
      Income taxes payable, etc.	551		455
      Provisions	181		697
      Other current liabilities	5,447		6,779
      Total current liabilities	81,041		77,021
      Non-current liabilities Bonds and borrowings	23,711		28,861
      Other financial liabilities	4,319		4,411
      Lease liabilities	9,077		8,903
      Retirement benefit liability	5,214		5,327
      Provisions	164		62
      Deferred tax liabilities	8,213		8,386
      Other non-current liabilities	505		434
      Total non-current liabilities	51,206		56,387
      Total liabilities	132,247		133,409
      Equity Share capital	12,119		12,119
      Capital surplus	8,583		9,240
      Retained earnings	71,541		71,677
      Treasury shares	(1,171)		(1,124)
      Other components of equity	24,242		25,123
      Total equity attributable to owners of parent	115,316		117,035
      Non-controlling interests	2,555		1,502
      Total equity	117,872		118,538
      Total liabilities and equity	250,120		251,947

   2. Condensed consolidated statements of profit or loss and comprehensive income

      Condensed consolidated statements of profit or loss

      (Million yen)

      Three Months Ended Three Months Ended

      	March 31, 2025		March 31, 2026
      Net sales	47,442		45,790
      Cost of sales	(35,874)		(34,739)
      Gross profit	11,567		11,050
      Selling, general and administrative expenses	(9,754)		(10,024)
      Other income	124		224
      Other expenses	(437)		(403)
      Share of profit (loss) of investments accounted for using equity method	(68)		(96)
      Operating profit (loss)	1,432		750
      Finance income	122		459
      Finance costs	(962)		(458)
      Profit (loss) before tax	592		751
      Income tax expense	(488)		(303)
      Profit (loss)	103		447
      Profit (loss) attributable to:
      Owners of parent	12		422
      Non-controlling interests	91		24
      Profit (loss)	103		447
      Earnings (loss) per share attributable to owners of parent
      Basic earnings (loss) per share (Yen)	0.26		8.92
      Diluted earnings (loss) per share (Yen)	-		-

      Condensed consolidated statements of comprehensive income

      Three Months Ended March 31, 2025

      (Million yen)

      Three Months Ended March 31, 2026

      Profit (loss) 103 447

      Other comprehensive income

      Items that will not be reclassified to profit or loss

      Net change in fair value of financial assets measured through other comprehensive income

      (69) 443

      Remeasurements of defined benefit plans － (7)

      Total of items that will not be reclassified to profit or loss

      (69) 435

      (3,533)		1,326
      (265)		47
      (3,799)		1,373
      (3,869)		1,809
      (3,765)		2,256

      Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations

      Share of other comprehensive income of investments accounted for using equity method

      Total of items that may be reclassified to profit or loss

      Total other comprehensive income Total comprehensive income

      Comprehensive income attributable to:
      Owners of parent	(3,774)		2,200
      Non-controlling interests	8		56
      Total comprehensive income	(3,765)		2,256

   3. Condensed consolidated statements of changes in equity

Equity attributable to owners of parent Other components of equity

Net change

Total equity

(Million yen)

Total other attributable

components to owners

Non-

controlling Total equity

of equity

of parent

interests

Balance at January 1, 2025 Profit (loss)

Other comprehensive income

Total comprehensive income

Purchase of treasury shares

Disposal of treasury shares

Dividends of surplus

Share-based payment transactions

Changes in ownership interest

Increase (decrease) by business combination

Transfer from other components of equity to retained earnings

Total transactions with owners, etc.

Balance at March 31, 2025

Balance at January 1, 2026 Profit (loss)

Other comprehensive income

Total comprehensive income

Purchase of treasury shares

Disposal of treasury shares

Dividends of surplus

Share-based payment transactions

Changes in ownership interest

Increase (decrease) by business combination

Transfer from other components of equity to retained earnings

Total transactions with owners, etc.

Balance at March 31, 2026

(Basis of preparation)

The condensed consolidated financial statements have been prepared in accordance with Article 5, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements, etc. of Tokyo Stock Exchange, Inc. (However, in accordance with Article 5, Paragraph 5 of the Standards for Preparation of Quarterly Financial Statements, etc., some disclosures in International Accounting Standard 34 "Interim Financial Reporting" are omitted.)

(Material accounting policies)

The material accounting policies applied in the condensed consolidated financial statements are the same as those applied in the consolidated financial statements for the previous fiscal year.

Income tax expense in the condensed consolidated financial statements is calculated based on the estimated average annual effective tax rate.

(Notes to going concern assumptions)

Not applicable

(Segment information)

1. Description of reportable segments

   The Group's reportable segments are those for which separate financial information is available and regular evaluation by the board of directors is being performed in order to decide the allocation of management resources and to review business results.

   The Group sets up divisions by product or service. Each division draws up a plan for comprehensive strategies in Japan and overseas for the products and services it handles, and thereupon develops its business activities.

   Accordingly, the Group consists of segments by product and service based on divisions. The three reportable segments are the Industrial Materials segment, the Devices segment, and the Medical segment.

   The Industrial Materials segment manufactures and sells decorative films, decorative molded parts, metallized papers, sustainable molded products, and others. The Devices segment manufactures and sells film-based touch sensors, gas sensors, and others. The Medical segment provides the contract design/development and manufacturing organization (CDMO) services for medical devices and pharmaceuticals. For medical devices, it provides CDMO services for major medical device manufacturers, especially for those in North America and Europe, with products such as surgical instruments for minimal invasive medical treatments and medical wearable sensors. For pharmaceuticals, it develops CDMO business for over-the-counter (OTC) drugs such as cold medicines and analgesic antipyretics, and also manufactures and markets its own prescription pharmaceuticals and quasi-drugs.

   (Note on changes in reportable segments)

   Effective from the first quarter ended March 31, 2026, the Company partially revised its reportable segments in line with changes in the Group's performance management structure. As part of this revision, the Medical Technologies segment and the pharmaceutical manufacturing business of the Company and certain consolidated subsidiaries have been integrated into the Medical segment. The pharmaceutical manufacturing business had previously been included in the Other category. Therefore, segment information for the three months ended March 31, 2025 previous fiscal year is stated according to the category following the change.

2. Methods of measurement for the amounts of sales and profit (loss) for each reportable segment

   The accounting methods for the reportable segments are the same as those used in preparing the consolidated financial statements. Segment profit is based on operating profit, and inter-segment sales are based on current market prices.

3. Information about sales and profit (loss) by reportable segment

   Three months ended March 31, 2025 (January 1, 2025 to March 31, 2025)

   (Million yen)

   	Reportable segment				Other (Note 1)	Total	Reconciliations (Note 2)	Consolidated (Note 3)
   	Industrial Materials	Devices	Medical	Sub-total
   Sales from external customers Inter-segment sales	18,785 36	13,558 2	13,625 -	45,969 39	1,473 213	47,442 252	-(252)	47,442 -
   Total	18,822	13,561	13,625	46,008	1,686	47,694	(252)	47,442
   Segment profit (loss)	1,012	865	742	2,620	(171)	2,448	(1,016)	1,432
   Finance income	-	-	-	-	-	-	-	122
   Finance costs	-	-	-	-	-	-	-	(962)
   Profit (loss) before tax	-	-	-	-	-	-	-	592

   (Notes) 1. The "Other" category consists of a business segment not included in the reportable segments and includes the Information and Communication, etc.

   1. The negative ¥1,016 million of reconciliations in segment profit (loss) includes unallocated corporate expenses, etc. Corporate expenses mainly consist of general and administrative expenses and foreign exchange loss or gain not attributable to any reportable segment.

   2. Segment profit (loss) is reconciled with operating profit (loss) recorded in the condensed consolidated statements of profit or loss.

   3. In the three months ended March 31, 2025, the Company finalized the provisional accounting treatment for business combination. Accordingly, the figures for the three months ended March 31, 2025 have been retroactively adjusted to reflect the finalization of the provisional accounting treatment.

Three months ended March 31, 2026 (January 1, 2026 to March 31, 2026)

(Million yen)

(Notes) 1. The "Other" category consists of a business segment not included in the reportable segments and includes the Information and Communication, etc.

1. The negative ¥1,290 million of reconciliations in segment profit (loss) includes unallocated corporate expenses, etc. Corporate expenses mainly consist of general and administrative expenses and foreign exchange loss or gain not attributable to any reportable segment.

2. Segment profit (loss) is reconciled with operating profit (loss) recorded in the condensed consolidated statements of profit or loss.